nep-agr New Economics Papers
on Agricultural Economics
Issue of 2016‒01‒18
twenty-two papers chosen by

  1. Forest Resources for Rural Household Food and Nutrition Security: The Case of Eastern Province of Zambia By Mofya-Mukuka, Rhoda; Simoloka, Asunta
  2. Organic Salmon – Considered a Fisheries or Agricultural Product Among Consumers? By Ankamah-Yeboah Isaac; Max Nielsen; Rasmus Nielsen
  3. Efficient support of short food supply chains in Hungary: a spatial analysis By Zsofia Benedek; Bálint Balazs
  4. The environmental Kuznets curve after 25 years By David I. Stern
  5. Inadequate N Application of Rice Farmers in the Philippines: Problems, Causes, Solutions By Briones, Roehlano M.
  6. Capital Allocation Across Sectors: Evidence from a Boom in Agriculture By Paula Bustos; Gabriel Garber; Jacopo Ponticelli
  7. Relative Contribution of Child Labour to Household Farm and Non-Farm Income in Ghana: Simulation with Child's Education By Koomson, Isaac; Asongu, Simplice
  8. Analysis of Beef Value Chain in Zambia: Challenges and Opportunities of Linking Smallholders to Markets By Lubungu, Mary; Sitko, Nicholas J.; Hichaambwa, Munguzwe
  9. A STUDY ON RETAIL FMCG MARKETING IN RURAL INDIA By Shambhavi Tamrakar; Bharti Venkatesh
  10. Consumers’ Response to Sustainability Labeling in Wild Caught Fish By Katrin Zander; Doreen Bürgelt; Inken Christoph-Schulz; Petra Salamon; Daniela Weible
  11. Consumer valuation of health attributes in food By Sinne Smed; Lars Gårn Hansen
  12. The economic impact of the Russian import ban: A CGE analysis By Kutlina-Dimitrova, Zornitsa
  13. Public policies for the strengthening of family farming in the Global South By Thomas Patriota; Francesco Maria Pierri
  14. Static and Dynamic Disparities between Monetary and Multidimensional Poverty Measurement: Evidence from Vietnam By Van Q. Tran, Sabina Alkire and Stephan Klasen
  15. The Effect of SNAP Benefits for Food Insecurity By Davis, David E.; Huang, Rui
  16. Contract Farming for Better Farmer-Enterprise Partnerships, ADB's Experience in the People's Republic of China By Asian Development Bank (ADB); Asian Development Bank (ADB); Asian Development Bank (ADB); Asian Development Bank (ADB)
  17. Rural electrification revisited : the case of Bihar, India By Oda, Hisaya; Tsujita, Yuko
  18. The Status of Customary Land and the Future of Smallholder Farmers Under the Current Land Administration System in Zambia By Honig, Lauren; Mulenga, Brian P.
  19. European Strategy 2020: what about the carrot? By Anne Drumaux; Julien Ravet
  20. A Tale of Two Diversities By Chloé Mulier; Pierre Courtois; Charles Figuières
  21. Self-enforcing environmental agreements and trade in fossil energy deposits By Thomas Eichner; Rüdiger Pethig
  22. Farmland Use Decision in the Dakota's: Key Results from the 2015 Producer Survey By Larry Janssen; Moses Luri; Hongli Feng; David Hennessy

  1. By: Mofya-Mukuka, Rhoda; Simoloka, Asunta
    Abstract: Zambia is among the countries with the highest levels of under-nutrition in the world (see IFPRI 2014), and these levels have remained high—around 40%—even when the country has achieved significant growth in agricultural production. About 60% of Zambia’s population lives in the rural areas where poverty levels are estimated to be as high as 75%. This aspect alone makes most rural households highly dependent on agriculture, the natural forests, and woodlands for their livelihoods including food provision and income generation.
    Keywords: Food Consumption/Nutrition/Food Safety, Food Security and Poverty,
    Date: 2015–12
  2. By: Ankamah-Yeboah Isaac (Department of food and Resource Economics, Faculty of Science, University of Copenhagen, Denmark); Max Nielsen (Department of food and Resource Economics, Faculty of Science, University of Copenhagen, Denmark); Rasmus Nielsen (Department of food and Resource Economics, Faculty of Science, University of Copenhagen, Denmark)
    Abstract: The year 2016 is groundbreaking for organic aquaculture producers in EU, as it represents the deadline for implementing a full organic life cycle in the aquaculture production. Such a shift induces production costs for farmers and if it should be profitable, they must receive higher prices. This study identifies the price premium on organic salmon in the Danish retail sale sector using consumer panel scanner data for households by applying the hedonic price model. A premium of 20% for organic salmon is found. Since this premium is closer to organic agriculture products than to ecolabelled capture fisheries products, it indicates that consumers consider organic salmon as an agriculture product more than fisheries product.
    Keywords: price premium, organic seafood, fisheries ecolabel, salmon; price premium, organic seafood, fisheries ecolabel, salmon
    Date: 2015
  3. By: Zsofia Benedek (Institute of Economics - Centre for Economic and Regional Studies - Hungarian Academy of Sciences); Bálint Balazs (Environmental Social Science Research Group)
    Abstract: There is an increasing political interest in Hungary to relocalize food. A Policy Intervention for Food Relocalization Index is introduced to quantitatively reveal how rural development programme measures should be allocated efficiently to promote local food production. Results show that present level of food activity and future prospects mismatch. Eastern Hungary has the highest potential for further development as it has relatively high level of food activity and food production capacity. The few small-scale farmers operating in Budapest area have been already engaged in short food supply chains to enjoy the various benefits (and higher profit).
    Keywords: Policy Intervention for Food Relocalization Index; Rural Development Programme; local food systems; small-scale farmers; regional differences; quantitative analysis
    JEL: Q18 R12 R58
    Date: 2015–10
  4. By: David I. Stern (Crawford School of Public Policy, The Australian National University)
    Abstract: The environmental Kuznets curve (EKC) has been the dominant approach among economists to modeling aggregate pollution emissions and ambient pollution concentrations over the last quarter century. Despite this, the EKC was criticized almost from the start and decomposition approaches have been more popular in other disciplines working on global climate change. More recently, convergence approaches to modeling emissions have become popular. This paper reviews the history of the EKC and alternative approaches. Applying an approach that synthesizes the EKC and convergence approaches, I show that convergence is important for explaining both pollution emissions and concentrations. On the other hand, while economic growth has had a monotonic positive effect on carbon and sulfur emissions, the EKC holds for concentrations of particulates. Negative time effects are important for sulfur emissions. The EKC seems to be most useful for modeling the ambient concentrations of pollutants it was originally applied to.
    Keywords: air pollution; economic growth; environmental Kuznets curve; convergence; climate change
    JEL: Q53 Q56
    Date: 2015–12
  5. By: Briones, Roehlano M.
    Abstract: Inadequate application of nitrogen (N) fertilizer has been identified by the Food Staples Sufficiency Program as a major constraint in achieving rice self-sufficiency. The available literature on fertilizer application in the Philippines tends to find inadequate N application under the agronomic and economic criteria. Explanations for the gap may be grouped under the following sets of factors: external constraints, attitude toward risk, and internal constraints. Different explanations imply different policy solutions, hence, it is critical to correctly identify the most relevant explanations. A new estimation using FAO Fertibase data confirms the finding of inadequate N application by rice farmers in the Philippines. Additional study is proposed covering the following: (1) comparing actual to optimal N application using secondary data for Central Luzon (obtained from the International Rice Research Institute) and (2) identifying the reasons for inadequate N application using primary data collected from a survey of rice farmers in Nueva Ecija.
    Keywords: Philippines, efficiency, fertilizer, yield gap, risk aversion, prospect theory, behavioral economics
    Date: 2016
  6. By: Paula Bustos; Gabriel Garber; Jacopo Ponticelli
    Abstract: We study the allocation of capital across sectors. In particular, we assess to what extent growth in agricultural profits can lead to an increase in the supply of credit in industry and services. For this purpose, we identify an exogenous increase in agricultural profits due to the adoption of genetically engineered soy in Brazil. The new agricultural technology had heterogeneous effects in areas with different soil and weather characteristics. We find that regions with larger increases in agricultural profitability experienced increases in local bank deposits. However, there was no increase in local bank lending. Instead, capital was reallocated towards other regions through bank branch networks. Regions with more bank branches receiving funds from soy areas experienced both an increase in credit supply and faster growth of small and medium sized firms
    Date: 2016–01
  7. By: Koomson, Isaac; Asongu, Simplice
    Abstract: Child labourers play an integral role in households’ income diversification process by contributing to farm and non-farm incomes but policies, including that of the ILO have focused largely on eliminating child labour from the agricultural sector through education. This study sought to ascertain the relative contribution of child labourers to farm and non-farm income using the GLSS6 data and employed a SUR estimation that simulated, empirically, with child’s education. Findings showed that as a child labourer spends more time in school, every Gh₵1.00 contributed to farm income is accompanied by a Gh₵2.12 contribution towards non-farm income. By implication, child education policy removes child labourers from the farm but are likely to have a paradoxical effect of pushing these children into non-farm activities as they engage in them after school and during weekends. The suggestion is that governments must provide adequate remuneration for workers and pay a good price for agricultural products so that households do not use children as instruments to diversity their income portfolios, since child labour acts as a push factor in the diversification process.
    Keywords: Child labour, Farm income, Non-Farm income, Altruistic, Non-Altruistic
    JEL: I21 J21 J22 J23 Q12
    Date: 2015–09
  8. By: Lubungu, Mary; Sitko, Nicholas J.; Hichaambwa, Munguzwe
    Abstract: Rapid urbanization and population expansion, coupled with sustained income growth and the emergence of an urban African middle class are triggering an increase in the consumption of animal protein in Zambia. The sustained increase in the consumption of animal proteins creates a host of new development opportunities to synergistically link small-scale livestock producers into economic growth processes from which they have largely been excluded.
    Keywords: Livestock Production/Industries,
    Date: 2015–12
  9. By: Shambhavi Tamrakar; Bharti Venkatesh
    Abstract: Rural marketing is a vast and developing area and when its comes to exploring rural market, it has a great future possibility to expand the market . FMCG sector in India is the fourth largest in the economy & none of the FMCG companies would like to miss this opportunity, it gives an immense growth possibilities. Characteristics like low income ,illiteracy , heterogeneity ,scattered population are making it a bit unattractive but still it has a huge scope of penetration as government are now launching various schemes to uplift the rural India to get them pace with the current scenario of technological advancement . FMCG companies are also adopting various marketing strategies and approaches to penetrate in to rural market and have win -win situation. This paper tries to understand what rural market are? Its origin, characteristics, contribution to economy ,challenges and future prospects. Key words: Rural market, EMCG, retail, marketing
    Date: 2015–09
  10. By: Katrin Zander (Thuenen Institute of Market Analysis, Bundesallee 50, D-38116 Braunschweig); Doreen Bürgelt (Thuenen Institute of Market Analysis, Bundesallee 50, D-38116 Braunschweig); Inken Christoph-Schulz (Thuenen Institute of Market Analysis, Bundesallee 50, D-38116 Braunschweig); Petra Salamon (Thuenen Institute of Market Analysis, Bundesallee 50, D-38116 Braunschweig); Daniela Weible (Thuenen Institute of Market Analysis, Bundesallee 50, D-38116 Braunschweig)
    Abstract: Increasing shares of fish products are sold as sustainably caught. This contribution tackles consumers’ specific knowledge on, interest in and expectations about sustainable fisheries and its products, their awareness of existing sustainability labels on fish as well as the purchase relevance of these labels in Germany. We conducted in total 12 focus groups with fish consumers in different German cities. The results show that consumers expect sustainable fisheries to avoid by-catches, overfishing and not to use dynamite. Knowledge about fisheries was mostly low and for many of the discussants this topic was new. When asked in an unprompted manner for their awareness of different labels of sustainably caught wild fish, the label of the Marine Stewardship Council was the only one known by some of the participants. It turned out that participants were skeptical about food labeling and standard setting in general. Accordingly, many participants stated not to look for sustainability labels when purchasing fish products. In order to tackle with consumers’ limited knowledge of fish and low interest in additional information, communication of sustainability in fisheries should be short, simple and reliable. Sustainability standards which clearly differentiate from noncertified fisheries are required.
    Keywords: consumer behaviour, consumer attitudes, sustainable fisheries; consumer behaviour, consumer attitudes, sustainable fisheries
    JEL: Q13 Q22
    Date: 2015
  11. By: Sinne Smed (Department of Food and Resource Economics, University of Copenhagen); Lars Gårn Hansen (Department of Food and Resource Economics, University of Copenhagen)
    Abstract: Numerous studies find that education and the healthiness of diets are highly correlated. One possible explanation is that the most highly educated consumers are better at understanding and appreciating the health implications of their diet than consumers with less lower education. In this study, we estimate a hedonic model of consumers’ valuation of food characteristics that allows nutrients to influence utility both through their perceived effects on health and through their effects on the taste and consumption experience. We find that the most highly educated have the same or lower revealed preferences for health compared to the least educated, and we find that it is differences in taste preferences, not differences in health preferences, that explain why the most highly educated have a healthier diet.
    Keywords: hedonic model, taste, health, food consumption
    JEL: D12 I12
    Date: 2016–01
  12. By: Kutlina-Dimitrova, Zornitsa (DG Trade)
    Abstract: The aim of this paper is to assess the economic impact of the Russian embargo from 7 August 2014 on certain agricultural food products from the EU, the USA, Norway, Canada and Australia. The effects of this economic sanction are analysed in the framework of a computable general equilibrium (CGE) model with a particular focus on bilateral and total exports, production and welfare. The detailed, based on real trade data, calibration of the model allows for an exact identification of the sectoral shares and prohibitive tariffs aggregated to match the CGE model’s sectoral level of aggregation. In addition, the paper carries on a validation exercise to compare the model’s predictions with real trade data developments. The modelling simulation results show that the impact of the ban on total exports of the EU, the USA, Norway, Canada and Australia are limited. Total extra-EU exports decline by merely 0.12%. Nevertheless at a disaggregate level there are sectors – ‘vegetables and fruits’, ‘other meat’ and ‘dairy products’ – which experience two digit percentage change declines.
    Keywords: International trade; Agri-food embargo; CGE modelling; Russia
    JEL: F13 F17 Q17
    Date: 2016–01–07
  13. By: Thomas Patriota (IPC-IG); Francesco Maria Pierri (IPC-IG)
    Abstract: "This special edition of Policy in Focus aims to follow up on discussions and debates instigated by the International Year of Family Farming (IYFF 2014) by drawing attention to specific cases as well as more general policy recommendations related to family farming in countries of the Global South. It is the product of a collaboration between the International Policy Centre for Inclusive Growth of the United Nations Development Programme (UNDP IPC-IG), the Food and Agriculture Organization of the United Nations (FAO) and the Ministry of Agrarian Development (MDA) of Brazil." (...)
    Keywords: public policies, strengthening, family farming, global South
    Date: 2015–12
  14. By: Van Q. Tran, Sabina Alkire and Stephan Klasen
    Abstract: There has been a rapid expansion in the literature on the measurement of multidimensional poverty in recent years. This paper focuses on the longitudinal aspects of multidimensional poverty and its link to dynamic income poverty measurement. Using panel household survey data in Vietnam from 2007, 2008, and 2010, the paper analyses the prevalence and dynamics of both multidimensional and monetary poverty from the same dataset. The results show that the monetary poor (or non-poor) are not always multidimensionally poor (or non-poor) - indeed the overlap between the two measures is much less than 50%. Additionally, monetary poverty shows faster progress as well as a higher level of fluctuation than multidimensional poverty. We suggest that rapid economic growth as experienced by Vietnam has a larger and more immediate impact on monetary than on multidimensional poverty.
    Date: 2015–08
  15. By: Davis, David E. (Department of Economics, South Dakota State University); Huang, Rui (US Department of Justice)
    Abstract: This paper investigates the effect of Supplemental Nutrition Assistance Program (SNAP) benefits for food insecurity. The American Recovery and Reinvestment Act (ARRA) temporarily increased SNAP benefits. We use that increase as a natural experiment to identify the causal effect of endogenous SNAP benefits. We estimate models of food insecurity with linear two-stage least squares and non-linear instrumental variable (IV) probit. Results suggest that a per person SNAP dollar decreases food insecurity by 0.4% to 0.9%. However, effects are nonlinear. The probability of food insecurity is highest, and marginal effects are largest, when benefit amounts are small.
    Keywords: SNAP, food assistance, food insecurity, natural experiment,
    JEL: I18 Q18 D12 H51
    Date: 2015–12
  16. By: Asian Development Bank (ADB); Asian Development Bank (ADB) (East Asia Department, ADB); Asian Development Bank (ADB) (East Asia Department, ADB); Asian Development Bank (ADB)
    Abstract: This report looks into the many challenges that agriculture in the People’s Republic of China (PRC) faces and how stakeholders are meeting the challenges head-on with the establishment of farmer–enterprise partnerships. It offers case studies and an in-depth look into several enterprises in the PRC and highlights the experiences of these companies which can be used as guidelines for farmer–enterprise partnerships. This report represents the Asian Development Bank’s efforts in pursuing its Finance++ strategy to promoting development. While the study was conducted in the context of the PRC, other developing economies could also benefit through proper generalization and customization of experience and cases learned.
    Keywords: farmer enterprise partnerships, prc, china, contract farming, sustainable agriculture, farming, dryland agriculture, agricultural modernization, agricultural management, agricultural production, agricultural development
    Date: 2015–05
  17. By: Oda, Hisaya; Tsujita, Yuko
    Abstract: This study describes the dynamic processes of electrification. Some electrified villages have experienced de-electrification, mainly due to technical issues. Some villages were re-electrified through various efforts. Our econometric exercise indicates that small villages in remote locations tend to not be prioritized in the electrification process. It also finds that the cumulative number of ever-electrified villages is higher among villages having a higher ratio of socially advanced classes. However, some of these experienced de-electrification, rendering ambiguous the impact of village social characteristics on electrification.
    Keywords: India, Rural development, Electric power, Electrification, De-electrification, Re-electrification, Bihar
    JEL: P25 Q01 Q40 R11
    Date: 2015–12
  18. By: Honig, Lauren; Mulenga, Brian P.
    Abstract: The past decade has ushered in an era of increasingly contentious land politics in Zambia, with investors, the government, and chiefs simultaneously blamed for injustices in land allocation. These conflicts over land have been exacerbated, and at times caused by the lack of transparency and available data on the status of land. While a variety of actors has real grievances with the security and efficiency of the current system of land allocation, smallholder farmers bear the brunt of the risk of continuing the status quo in land policy.
    Keywords: Land Economics/Use,
    Date: 2015–10
  19. By: Anne Drumaux; Julien Ravet
    Abstract: This paper aims at testing the incitative role of past structural funds on the achievement oftargets of Europe 2020 strategy. The methodology used is a quantitative analysis aiming atexplaining a dependant variable “difference to target” for each dimension of Europe 2020(employment rate, R&D expenditures, greenhouse gas emissions, renewable energy, earlyleaving from education, tertiary education, people at risk of poverty) by several independentvariables, namely structural funds consumption (inputs), structural funds outputs over theperiod 2007-2013, cumulated structural funds for the previous period 2000-2006. Theseindependent variables will be used among other variables classically considered by scholarsand/or by the European Commission.
    Keywords: Strategic Management; European Governance; Europe 2020; Sustainable Development
    JEL: L38 N64 O52 Q56
    Date: 2016–01–11
  20. By: Chloé Mulier (LAMETA); Pierre Courtois (INRA-LAMETA); Charles Figuières (INRA-LAMETA)
    Abstract: Efficient management of biodiversity aims at allocating conservation efforts in order to maximize diversity. Defining a diversity criterion is however far to be trivial; there is not one but several indices that can be used as biodiversity measures. This paper elicits and compares two in situ criterions for biodiversity conservation, based on two biodiversity indices stemming from different disciplines: Weitzman's index in economics and Rao's index in ecology. Both indices combines differently pieces of information about (1) species survival probability, and (2) measures of dissimilarity between species. In order to truly have in situ protection criterions, we add another layer of information about (3) the ecological interactions between species. Considering a simple three species ecosystem, we show that choosing one criterion or the other has policy implications, for they sometimes deliver diverging protection recommendations. We unravel the role played by the elements (1), (2) and (3) in the ranking, which allows us to highlight some specificities of the in situ criterions. For example, other things equal, Weitzman's in situ ranking tends to favor "robust" species, while Rao's in situ ranking gives priority to "fragile" species.
    Keywords: conservation priorities, ecological interactions, biodiversity indices
    JEL: C6 Q5
    Date: 2015–12
  21. By: Thomas Eichner; Rüdiger Pethig
    Keywords: climate coalition, deposit, fuel, Nash, self-enforcing IEA
    JEL: C72 Q38 Q58
    Date: 2015
  22. By: Larry Janssen (Deparment of Economics South Dakota State University); Moses Luri (Deparment of Economics South Dakota State University); Hongli Feng (Agricultural, Food, and Resource Economics Dept., Michigan State University); David Hennessy (Agricultural, Food, and Resource Economics Dept., Michigan State University)
    Date: 2015–11–20

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